Major U.S. banks are expected to report lower second-quarter profits due to decreased interest income and increased provisions for potential loan losses. Analysts anticipate higher risks associated with commercial and industrial (C&I) loans and commercial real estate loans, reflecting a normalization of the credit cycle. The Federal Reserve’s stress test indicates C&I loan loss rates could rise to 8.1% from 6.7% last year. However, the outlook isn’t entirely gloomy, as Wall Street divisions may see improved performance due to a 20% increase in global merger and acquisition volumes and a 10% rise in equity capital market volumes in the first half of the year.